easyJet Valuation

Q: What is the Fair Price of EZJL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EZJL (£5.53) is trading above our estimate of [[fair value]] (£1.42)

Is EZJL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EZJL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EZJL (£5.53) is trading above our estimate of fair value (£1.42)

Significantly Below Fair Value: EZJL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EZJL?

Key metric: As EZJL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EZJL. This is calculated by dividing EZJL's market cap by their current earnings.
What is EZJL's PE Ratio?
PE Ratio	9.2x
Earnings	UK£452.00m
Market Cap	UK£4.16b

EZJL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	4.3x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does EZJL's PE Ratio compare to its peers?

The above table shows the PE ratio for EZJL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	7.8x
JET2 Jet2	6.9x	-0.3%	UK£3.4b
WIZZ Wizz Air Holdings	5.5x	16.9%	UK£1.3b
IAG International Consolidated Airlines Group	5.4x	3.5%	UK£12.7b
IDS International Distribution Services	13.5x	28.9%	UK£3.4b
EZJL easyJet	9.2x	8.4%	UK£4.2b

Price-To-Earnings vs Peers: EZJL is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (7.8x).

Price to Earnings Ratio vs Industry

How does EZJL's PE Ratio compare vs other companies in the Global Airlines Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: EZJL is good value based on its Price-To-Earnings Ratio (9.2x) compared to the Global Airlines industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is EZJL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EZJL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.2x
Fair PE Ratio	13.4x

Price-To-Earnings vs Fair Ratio: EZJL is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EZJL forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	UK£5.53	UK£6.64 +19.9%	13.6%	UK£8.50	UK£4.80	n/a	21
Nov ’25	UK£5.20	UK£6.63 +27.5%	13.9%	UK£8.50	UK£4.80	n/a	21
Oct ’25	UK£5.01	UK£6.54 +30.6%	14.8%	UK£8.50	UK£4.80	n/a	20
Sep ’25	UK£4.77	UK£6.52 +36.7%	15.2%	UK£8.50	UK£4.80	n/a	19
Aug ’25	UK£4.33	UK£6.61 +52.7%	13.7%	UK£8.50	UK£5.25	n/a	19
Jul ’25	UK£4.52	UK£7.04 +55.7%	10.8%	UK£8.50	UK£5.25	n/a	19
Jun ’25	UK£4.60	UK£7.06 +53.5%	10.9%	UK£8.50	UK£5.25	n/a	19
May ’25	UK£5.36	UK£7.10 +32.5%	10.8%	UK£8.50	UK£5.25	n/a	19
Apr ’25	UK£5.67	UK£6.85 +20.9%	12.9%	UK£8.50	UK£4.75	n/a	18
Mar ’25	UK£5.56	UK£6.81 +22.6%	12.7%	UK£8.50	UK£4.75	n/a	18
Feb ’25	UK£5.54	UK£6.63 +19.7%	16.6%	UK£8.75	UK£4.50	n/a	19
Jan ’25	UK£5.08	UK£6.28 +23.5%	21.1%	UK£8.75	UK£4.50	n/a	19
Dec ’24	UK£4.68	UK£6.19 +32.3%	21.4%	UK£8.75	UK£4.50	n/a	19
Nov ’24	UK£3.70	UK£6.19 +67.3%	22.1%	UK£8.75	UK£4.15	UK£5.20	19
Oct ’24	UK£4.30	UK£6.48 +50.8%	19.4%	UK£8.75	UK£4.50	UK£5.01	19
Sep ’24	UK£4.24	UK£6.52 +53.8%	19.0%	UK£8.75	UK£4.50	UK£4.77	19
Aug ’24	UK£4.53	UK£6.52 +44.1%	19.0%	UK£8.75	UK£4.50	UK£4.33	19
Jul ’24	UK£4.83	UK£6.35 +31.5%	19.2%	UK£8.75	UK£4.50	UK£4.52	19
Jun ’24	UK£4.72	UK£6.29 +33.5%	19.5%	UK£8.75	UK£4.30	UK£4.60	18
May ’24	UK£4.97	UK£5.96 +19.9%	16.1%	UK£8.25	UK£4.30	UK£5.36	16
Apr ’24	UK£5.16	UK£5.15 -0.3%	21.2%	UK£6.90	UK£3.00	UK£5.67	16
Mar ’24	UK£4.91	UK£5.01 +2.1%	24.3%	UK£6.90	UK£2.70	UK£5.56	16
Feb ’24	UK£4.82	UK£4.83 +0.4%	25.6%	UK£6.70	UK£2.70	UK£5.54	15
Jan ’24	UK£3.25	UK£4.63 +42.3%	31.8%	UK£7.00	UK£2.90	UK£5.08	14
Dec ’23	UK£3.89	UK£4.84 +24.4%	27.8%	UK£7.00	UK£2.60	UK£4.68	14
Nov ’23	UK£3.54	UK£4.84 +36.9%	32.2%	UK£7.50	UK£2.60	UK£3.70	14

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.